The following financial statement data for years ending December 31 for Tango Company

are shown below.

2014 2013

Cost of merchandise sold $3,864,000 $4,001,500

Inventories:

Beginning of year 770,000 740,000

E nd of year 840,000 770,000

a. Determine the inventory turnover for 2014 and 2013.

b. Determine the number of days sales in inventory for 2014 and 2013. Round to one

decimal place.

c. Does the change in inventory turnover and the number of days sales in inventory

from 2013 to 2014 indicate a favorable or an unfavorable trend?